Mary Jo Borer v. United States Department of Veterans Affairs

197 F.3d 232, 1999 U.S. App. LEXIS 30511, 1999 WL 1062982
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 24, 1999
Docket98-4111
StatusPublished
Cited by2 cases

This text of 197 F.3d 232 (Mary Jo Borer v. United States Department of Veterans Affairs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mary Jo Borer v. United States Department of Veterans Affairs, 197 F.3d 232, 1999 U.S. App. LEXIS 30511, 1999 WL 1062982 (6th Cir. 1999).

Opinion

OPINION

CONTIE, Circuit Judge.

Plaintiff-appellant Mary J. Borer (“Borer”) filed a motion in district court to prevent the defendant-appellee United States Department of Veterans Affairs (“V.A.”) from obtaining access to her financial records. The district court denied Borer’s motion on August 14, 1998. We dismiss Borer’s appeal for lack of jurisdiction.

I.

Borer’s husband received monthly benefits from the V.A. prior to his death. Following his death, Borer received widow’s benefits. On April 2, 1998, the V.A. informed Borer that it would be issuing subpoenas for income information to determine her right to continue receiving widow’s benefits. On April 16, 1998, Borer filed a motion in district court to prevent the V.A. from obtaining access to her financial records. See Motion for Order Pursuant to Customer Challenge Provisions of the Right to Financial Privacy Act of 1978 (“I, Mary Jo Borer, hereby move this Court, pursuant to the Right to Financial Privacy Act of 1978, 12 U.S.C. § 3410, for an order preventing the Government from obtaining access to my financial records. The agency seeking access is the Veterans Benefits Administration of the Department of Veterans Affairs.”). On April 17, 1998, Borer filed an Amended Motion for Order Pur *233 suant to Customer Challenge Provisions of the Right to Financial Privacy Act of 1978.

The V.A. pays benefits to disabled veterans based on financial need. Because these benefits may be reduced on a dollar-for-dollar basis or discontinued altogether when a benefit recipient receives other earned and/or unearned income, the V.A. is authorized to use Internal Revenue Service (“IRS”) and Social Security Administration (“SSA”) records to verify a benefit recipient’s reported income. Specifically, financial records obtained from the SSA and the IRS are compared to Pension Eligibility Verification Reports submitted by benefit recipients to the V.A. every year pursuant to 38 U.S.C. § 1506. When the income reported by benefit recipients differs from the income reported by the IRS and the SSA, the V.A. may issue subpoenas to “require the production of books, papers, documents, and other evidence” pursuant to 38 U.S.C. § 5711. This legislation was enacted to curb overpayments of need-based benefits.

On August 14, 1998, the district court denied Borer’s Amended Motion for Order Pursuant to Customer Challenge Provisions of the Right to Financial Privacy Act of 1978 because the court found that the V.A. was entitled to the financial records that it sought because the income that Borer reported in her June 9,1995 application for death benefits (i.e., zero) differed significantly from the income reported by the IRS (i.e., unearned income exceeding $54,000) for the same time period. Specifically, the district court held:

This matter is before the Court on the amended Motion for Order Pursuant to Customer Challenge Provision of the Right to Privacy Act of 1978 filed by movant Mary Jo Borer against the United States Department of Veterans Affairs (“VA”). The VA has filed a response to the movant’s amended motion and the movant has filed a rebuttal to that response. After consideration of all of the issues before it, this Court has reached the conclusion that movant’s motion is not well taken and must be denied and the Government’s subpoena issued on April 2, 1998 for income information shall be enforced.
On April 2, 1998, the VA issued a subpoena to the movant for income information in this case in order to determine her entitlement to payment of veteran benefits. The VA pays monetary benefits to non-service connected disabled veterans based on financial need. Those benefits may either be reduced on a dollar for dollar basis or discontinued when the benefit recipient receives other earned and/or unearned income. The VA is authorized by § 8051 of the Omnibus Budget Reconciliation Act of 1990 to use the Internal Revenue Service (“IRS”) and Social Security Administration (“Social Security”) income data for income verification of need based pension requests, including that filed by this movant. 38 U.S.C.' § 1506. When discrepancies occur between the IRS report on unearned income, as reported by financial institutions, and the verification report submitted by the veteran benefit recipient (movant here), the VA has the subpoena power pursuant to 38 U.S.C. § 5711 to obtain information to verify the information received by it from the movant, IRS and/or Social Security.
In this instance it is uncontroverted on the record before this Court that the movant in her application for death pension indicated that her income was zero (0). A discrepancy has occurred in that income approximating $54,000 in the form of interest or other similar income for the movant ... was reported by [the] IRS to the VA.
Under the above circumstances and the applicable law, the VA is entitled to issue a subpoena and cause compliance therewith once the due process procedures mandated by the Right to Privacy Act of 1978 [have been] complied with. It is uncontroverted in the record that the VA has complied with those due *234 process procedures. Therefore, the VA is entitled to the information sought pursuant to its subpoena issued to the mov-ant [on] April 2,1998.
It is therefore ORDERED that the mov-ant’s amended Motion for Order Pursuant to Customer Challenge Provision of the Right to Financial Privacy Act of 1978 is denied and that the subpoena issued on April 2, 1998 by the VA is ordered to be enforced.

District Court’s August 14,1998 Memorandum and Order at 1-3.

Borer filed her timely notice of appeal on September 14, 1998.

II.

As noted above, Borer’s husband received monthly benefits from the V.A. pri- or to his death. Following his death, Borer received widow’s benefits from the V.A. On April 2, 1998, the V.A. notified Borer that it would be issuing subpoenas for income information because a discrepancy existed in the income that Borer reported in her June 9, 1995 application for V.A. benefits (ie., zero) and the income reported by the IRS (ie., unearned income exceeding $54,000) for the same time period. On April 17, 1998, Borer filed an Amended Motion for Order Pursuant to Customer Challenge Provisions of the Right to Financial Privacy Act of 1978 pursuant to 12 U.S.C. § 3410. The district court denied Borer’s amended motion on August 14, 1998. Borer now appeals the district court’s decision.

On appeal, Borer asserts that the district court erred by denying her 12 U.S.C. § 3410 motion without a hearing. Specifically, Borer argues:

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Bluebook (online)
197 F.3d 232, 1999 U.S. App. LEXIS 30511, 1999 WL 1062982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mary-jo-borer-v-united-states-department-of-veterans-affairs-ca6-1999.